Holidays and horses back on the spend list

THE lockdown on our wallets appears to be over.

Spending on air travel, accommodation and gambling has spiked since restrictions were eased, an analysis of debit cards shows.

With more countries opening up to tourists, the biggest spike was in spending on flights, which was up by 139% last week, albeit from a low level during lockdown.

Grocery shopping was down by 2%, but spending on other areas of retail was up by 56%, the analysis of Bank of Ireland debit card transactions found.

Bank of Ireland director John O’Beirne said: ‘While grocery spend was relatively flat last week following an extraordinary spike during lockdown, consumers are spending significantly more on retail. Holidays

are clearly front-of-mind, and spend on air travel and accommodation increased significantly last week.

‘A natural impact from the easing of restrictions is that we are leaving our homes more often, and this is clearly reflected in more of us spending on passenger transport services and spending less on entertainment such as streaming services. Driven by takeaway services, spend on restaurants also increased last week albeit compared to a low baseline.

‘Covid-19 has had a detrimental impact across health, society and the economy, impacting livelihoods and businesses across Ireland. Hopefully, consumer spending continues its resurgence, supporting businesses to bounce back.’

Consumers’ Association of Ireland chief Dermott Jewell said: ‘The percentages look enormous but they’re up from a low base and it still does show the level of caution underpinning it and also, in truth, finances will be watched very closely by consumers, certainly for the remainder of this year because of the insecurity of jobs.’

Holiday planning has been on people’s minds too, with debit card spend on booking accommodation up 101%.

And with more and more restaurants and cafes turning to takeaway and delivery services, spending there was up 63%. The return of horse racing in Ireland meant a 57% increase in gambling.

Spend on passenger transport – trains, buses, taxis – was up 115%, as more shoppers travelled into town and city centres.

Meanwhile, debit card spending on entertainment dropped by 11%, with gaming down 21%, an indication people are spending less time at home.